Gatchalian warns on impact of oil price increase to US$100 per barrel
Published May 21, 2018 04:17 pm
By Mario Casayuran
The chairman of the Senate energy committee urged today the Duterte administration to prepare ahead in the event that crude prices would reach the US $100 per barrel threshold in the international market.
Sen. Sherwin T. Gatchalian (Senate of the Philippines / MANILA BULLETIN)
Senator Sherwin Gatchalian said “Filipinos are really starting to feel the negative effects of rapidly rising global oil prices.’’
He said oil prices are already at US $79 per barrel, the highest mark since November 2014.
’This should send a clear signal to our government that it is time to start preparing for contingencies in case we hit the $100 mark,” he pointed out.
Last week, Patrick Pouyanne, the chief executive officer of French oil company Total SA, warned that oil prices could hit US $100 per barrel in the coming months.
Gatchalian, also chairman of the Senate economic affairs committee, thus urged the Department of Energy (DOE) to accurately forecast the expected price of crude oil over the next six months and lead the preparation of strategies that would minimize the impact of surging prices on public utility drivers and private consumers.
“DOE must ensure that it provides accurate estimates, so the government may be guided in crafting both immediate and long-term ways to insulate the country from shocks in the global oil market,” he said.
Prices of petroleum products are expected to increase this week by up to P1.60 per liter for gasoline and P1.10 per liter for diesel.
Gatchalian observed the “unusually accelerated pricing track” of petroleum products is disrupting public consumption.
From January to May 2018, gasoline prices increased P 8.07 pesos per liter, while diesel is up P8.95 pesos per liter.
He said that the government could explore reviving and expanding the Pantawid Pasada or the Public Transport Assistance Program, which was first rolled out in 2011, as an immediate mitigating program to shield the vulnerable sectors from the impact oil price hikes.
Under the program, legitimate PUV franchise holders were given cash cards worth P 1,050 to buy fuel from accredited gasoline stations.
Sen. Sherwin T. Gatchalian (Senate of the Philippines / MANILA BULLETIN)
Senator Sherwin Gatchalian said “Filipinos are really starting to feel the negative effects of rapidly rising global oil prices.’’
He said oil prices are already at US $79 per barrel, the highest mark since November 2014.
’This should send a clear signal to our government that it is time to start preparing for contingencies in case we hit the $100 mark,” he pointed out.
Last week, Patrick Pouyanne, the chief executive officer of French oil company Total SA, warned that oil prices could hit US $100 per barrel in the coming months.
Gatchalian, also chairman of the Senate economic affairs committee, thus urged the Department of Energy (DOE) to accurately forecast the expected price of crude oil over the next six months and lead the preparation of strategies that would minimize the impact of surging prices on public utility drivers and private consumers.
“DOE must ensure that it provides accurate estimates, so the government may be guided in crafting both immediate and long-term ways to insulate the country from shocks in the global oil market,” he said.
Prices of petroleum products are expected to increase this week by up to P1.60 per liter for gasoline and P1.10 per liter for diesel.
Gatchalian observed the “unusually accelerated pricing track” of petroleum products is disrupting public consumption.
From January to May 2018, gasoline prices increased P 8.07 pesos per liter, while diesel is up P8.95 pesos per liter.
He said that the government could explore reviving and expanding the Pantawid Pasada or the Public Transport Assistance Program, which was first rolled out in 2011, as an immediate mitigating program to shield the vulnerable sectors from the impact oil price hikes.
Under the program, legitimate PUV franchise holders were given cash cards worth P 1,050 to buy fuel from accredited gasoline stations.